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Mike Pompeo: HSBC giving into China's 'bullying' in Hong Kong

Oscar Williams-Grut
·Senior City Correspondent, Yahoo Finance UK
·2 min read
US Secretary of State Mike Pompeo speaks to reporters following a meeting with members of the UN Security Council about Iran's alleged non-compliance with a nuclear deal and calling for the restoration of sanctions against Iran at United Nations headquarters in New York, August 20, 2020. (Photo by MIKE SEGAR / POOL / AFP) (Photo by MIKE SEGAR/POOL/AFP via Getty Images)
US Secretary of State Mike Pompeo. Photo: MIKE SEGAR/POOL/AFP via Getty Images

The US Secretary of State has once again singled out HSBC (HSBA.L) for criticism over its actions in Hong Kong, accusing the bank of giving into “bullying” by China.

In a statement overnight, Mike Pompeo said he was “dismayed” by reports that HSBC has been blocking the credit cards and accounts of executive at Next Media (0282.HK), the pro-democracy publishing group based in Hong Kong.

Next Media’s founder Jimmy Lai was arrested earlier this month, part of a widespread crackdown on pro-democracy activists in Hong Kong by Beijing. Lai’s arrest was the most high profile action taken under China’s widely condemned new Hong Kong security law and sent shockwaves around the world.

READ MORE: US attacks 'fealty' of HSBC as it urges UK to ditch Huawei

Pompeo said reports that HSBC was aiding in this effort suggested the bank was “maintaining accounts for individuals who have been sanctioned for denying freedom for Hong Kongers, while shutting accounts for those seeking freedom.”

He said HSBC was giving in to “coercive bullying tactics” by China.

“Free nations must ensure that corporate interests are not suborned by the CCP [Chinese Communist Party] to aid its political repression,” Pompeo said. “We stand ready to help the British government and its companies resist CCP bullying and stand for freedom.”

FILE - In this May 4, 2018, file photo, a man walks past a branch of HSBC bank in Hong Kong. Europe's biggest bank has reported that its net profit fell 53% in 2019 to $6 billion. London-based HSBC, whose profit is mainly from Asia, said it plans to revamp its U.S. and European business and shed $100 billion in assets to improve its profitability. (AP Photo/Kin Cheung, File)
A HSBC branch in Hong Kong. Photo: AP Photo/Kin Cheung, File

It marks the second time this year Pompeo has publicly called out HSBC over its relationship with China. In June, the US Secretary of State attacked the “fealty” of HSBC for supporting China’s widely condemned national security law. Peter Wong, the head of HSBC’s Asian business, signed a petition supporting the law, which forcibly bought Hong Kong under Beijing’s authority.

HSBC has been approached for comment.

Shares in the bank fell 2% on Thursday, the worst performance of any major listed UK bank.

READ MORE: Backlash over HSBC's support for China's Hong Kong security law

HSBC is headquartered in London but makes much of its profit in Asia. Shares are dual listed in Hong Kong and London. Chief executive Noel Quinn’s long term strategy is to focus more on China and the wider Asian region.

In its half-year report, published this week, HSBC flagged rising geopolitical risk as a key challenge to its business.

“US-China tensions continued to escalate including in relation to Hong Kong,” the bank wrote. “The financial impact to the Group of geopolitical risks in Asia is heightened due to the importance and profitability of the region, and Hong Kong in particular.”

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